Buying a Home Before Interest Rates Go Up. It’s no secret interest rates have increased, flirted with going down, but then went up more than it went down. And according to the National Association of REALTORS®Chief Economist, Lawrence Yun, “The Fed may be forced to raise interest rates even more aggressively than planned—even with the rising possibility of a recession on the horizon. The mortgage market had already factored in several additional rounds of the Fed’s rate hike but may have to adjust a bit higher based on today’s uncomfortable inflation rate.” (REALTORMagazine)
The Federal Reserve’s next meeting is at the end of this month (July 2022) and that’s when rates could increase again.
So, now is the time to buy your home in Coachella Valley before interest rates jump again and home prices increase even more.
However, don’t jump in buying a home in the desert without a plan.
Here is what you need to do to get the best interest rate and home:
Choose your real estate agent very carefully. Actually, this is an easy one – me. I have been through several white-knuckle real estate markets here in the Desert and I can help you make the best decisions for your situation in this real estate market. I will listen to you carefully, which allows me to quickly zero in on your preferences, saving you precious time, especially since time is of the essence now…. I’m focused on the needs of all my clients, no matter what your criteria may be.
If you’re financing your Desert purchase, you will need to find a loan officer now and get pre-approved and not just prequalified. I recommend calling Dean Rathbun with United American Mortgage. Dean will provide you with his top-notch service and expertise. And when you talk to Dean or any lender you choose, be sure to discuss locking your interest rates with your loan officer.
Our real estate market is changing in the desert. If a home was listed and still sitting on the market, the home may not have been priced right. (in today’s market, property is not flying off the shelves like they did last year – it was a frenzy last year). This means the sellers may be lowering their prices or interested in accepting a lower offer. But we’ll be talking before we ever submit an offer, and you will feel comfortable submitting your offer on the home of your choice.
So, home prices are going to continue to go up as well as interest rates. If you choose to purchase a home now, you’ll still be ahead of the ball and be able to increase your equity with your lower interest rates.
Give me a call and let’s get started today.